Which aspect is often included in sustainability assessments of companies?

Sustainability assessments of companies typically incorporate environmental, social, and governance (ESG) impacts because these dimensions provide a comprehensive view of a company's long-term viability and ethical standing. The environmental aspect examines how a company interacts with the natural world, assessing factors such as resource usage, waste management, and carbon emissions. The social dimension focuses on the company's relationships with employees, suppliers, customers, and the communities in which it operates, looking at labor practices, community engagement, and human rights issues. Governance evaluates the company's leadership, transparency, shareholder rights, and overall ethical practices.

Incorporating ESG impacts into sustainability assessments allows stakeholders, including investors, to gauge not only the financial health of a company but also its commitment to responsible practices and its potential for sustainable growth. This multifaceted approach is vital in today's investment landscape, where many investors are increasingly concerned about the broader implications of their investments beyond mere financial returns. The assessment helps in understanding how these non-financial factors can influence business performance, risk, and opportunity over the long term.